Any time now ....

The stock market is due for a major crash. A $300 million Grameenphone IPO is headed its way and it is going to consume a lot of cash. Kudos to GP for timing this IPO correctly, right in the middle of a liquidity crisis. (I can only speculate about this liquidity crisis, as newspapers seem to run this story every few days).

The last biggest IPO was only for $13 million. Even though 1/2 of the $300 million GP IPO will be in private placement, it still means that the market will suddenly lack $300 million that was floating around. This is so small change my any means.

What will Grameenphone do with $300 million?
With the new precautionary and cost-cutting strategy they are more likely to buy spectrum with it rather than expand manpower. This means $300 million is hooked up in a service that doesn't yield much in terms of cashflow or employment. So more woes to continue for the Dhaka Stock Exchange.

Real Results
Sad thing is, even though the entire market will crash, nobody will recognize it because the GP stock will be more than enough to average out everyone else who sunk. The brokers won't lose money, they make it both ways, but the people who were manipulated to invest into particular stocks will. Watch Boiler Room to find out what currently happens in terms of speculation and manipulation with Bangladeshi brokers.